Judge: Stephen I. Goorvitch, Case: 21STCV12160, Date: 2022-08-30 Tentative Ruling

Case Number: 21STCV12160    Hearing Date: August 30, 2022    Dept: 39

Juan Nolasco v. Lee Kum Kee (U.S.A.) Inc., et al.

Case No. 21STCV12160

Motion to Compel Arbitration

            Plaintiff Juan Nolasco (“Plaintiff”) filed this action under the California Labor Code Private Attorneys General Act of 2004 (“PAGA”) against Lee Kum Kee (U.S.A.) Inc. and Lee Kum Kee (USA) Foods, Inc. (collectively, “Defendants”).  There is no dispute that Plaintiff signed an arbitration agreement that covers wage and hour claims under the Labor Code.  Nor is there any dispute that the agreement is governed by the Federal Arbitration Act. 

            Defendants move to compel arbitration of Plaintiff’s individual PAGA claim under Viking River Cruises, Inc. v. Moriana (2022) 142 S.Ct. 1906.  Plaintiff argues that the motion is premature because there is a petition for rehearing.  That petition was denied on August 22, 2022.  Therefore, the motion is granted with respect to Plaintiff’s individual PAGA claim.

            The Court continues the hearing on Defendant’s motion to dismiss the representative PAGA claim.  The U.S. Supreme Court held that there is no standing to pursue such claims following arbitration of an individual PAGA claim: “A plaintiff has standing to maintain non-individual PAGA claims in an action only by virtue of also maintaining an individual claim in that action.  As a result, [a plaintiff] would lack statutory standing to maintain her non-individual claims in court, and the correct course was to dismiss her remaining claims.”  (Id., p. 1913.)  The California Supreme Court has held that an employee may maintain a representative PAGA action even if his individual claims have been resolved.  (Kim v. Reins International California, Inc. (2020) 9 Cal.5th 73, 84-85.)  Defendants cite no California cases following the U.S. Supreme Court’s holding in Viking River Cruises v. Moriana addressing this issue.

            Based upon the foregoing, the Court orders as follows:

            1.         Defendant’s motion to compel arbitration of Plaintiff’s individual PAGA claim is granted. 

            2.         The Court advances and vacates the final status conference and trial date.  The Court stays the case pending arbitration of the individual claim.

            3.         The Court sets an Order to Show Cause re: Dismissal (Arbitration) for April 10, 2023, at 8:30 a.m. 

            4.         The Court continues the hearing on Defendant’s motion, to the extent it seeks dismissal of the representative PAGA claim, to April 10, 2023, at 8:30 a.m.

            5.         Counsel for Defendants shall provide notice and file proof of such with the Court.